The petroleum industry is vital for powering economies and driving various sectors. In the first nine months of the fiscal year 2024 (FY24), there has been a noticeable shift in sales trends within the petroleum sector in comparison to the same period last year (SPLY).
A Closer Look
According to recent data, the total sale of petroleum products during this period experienced a significant decline of 11 percent year-on-year (YoY), amounting to 11.34 million tons, compared to 12.80 million tons in SPLY. This reduction in sales was observed across all categories, with volumetric sales of Motor Spirit (MS), High-Speed Diesel (HSD), and Furnace Oil (FO) standing at 5.30 million tons, 4.58 million tons, and 0.84 million tons, respectively.
Looking at individual companies, Pakistan State Oil (PSO) saw an 11 percent YoY improvement in sales, driven by increased MS and HSD sales. However, companies like Attock Petroleum Limited (APL) and Hascol Petroleum Limited witnessed declines of 9 percent and 41 percent YoY, respectively.
In terms of market share, PSO and Shell Pakistan Limited (SHEL) experienced slight drops, while APL and Hascol saw increases during 9MFY24. This dynamic landscape highlights the importance of monitoring and adapting to market trends in the petroleum industry.
Fresh Hike in Petrol Price
A couple of days back, the Ministry of Finance issued a notification regarding the new prices of petroleum products, which brought both good and bad news for consumers. According to the notification, the petrol price in Pakistan increased by Rs. 9.66 per liter, reaching a new price of Rs. 289.41 per liter.
On the other hand, there was a sigh of relief for diesel users as its price had been reduced by Rs. 3.32 per liter, now standing at Rs. 282.24 per liter.
The driving force behind this move, or what prompted the newly established government to announce such a substantial hike in petrol prices, is primarily attributed to the International Monetary Fund (IMF) recommendation to reintroduce an 18% general sales tax (GST) on petrol as a condition for the release of the final tranche of its bailout package.
